Home builder's quality of work called shoddy

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Home builder's quality of work called shoddy

By April Hunt | Sentinel Staff Writer

Posted April 11, 2002

Unhappy home. (ED SACKETT/ORLANDO SENTINEL)

Apr 10, 2002

Feliciano's house. (ED SACKETT/ORLANDO SENTINEL)

Apr 10, 2002

Spring Lake Village. (ORLANDO SENTINEL)

Apr 10, 2002

KISSIMMEE -- When their foundations cracked, mold seeped into their living

rooms, water flooded their porches and garages and bill collectors laid

claim to their property, the residents of Spring Lake Village subdivision

took their fight to the Osceola County Commission.

And -- in a rare victory for home buyers in growth-driven Central Florida --

they won.

After a five-hour hearing that ended early Wednesday, commissioners in

Central Florida's fastest-growing county took the extraordinary step of

revoking Klein's license to build in Osceola. They fined him $5,000

and asked state inspectors stop him from building anywhere in Florida again.

Commissioners said their decision should send a message:

" We will not tolerate this sort of development, " said Chairman Owen.

Slow-growth advocates said they hadn't heard of elected officials stepping

between a developer and his buyers in Florida.

Nearly half of the 71 homeowners in the gated community of Spring Lake

Village complained that the developer failed to build after he got their

cash, that subcontractors hadn't been paid and that much of the work was

shoddy or woefully late. County officials said they tried to persuade Klein

to fix the troubles, and when he didn't, they took action.

Klein's attorney called the ruling a " death sentence " for his client.

" In the context of taking away his ability to earn a living, this limits the

sort of work he can do in the future, " said lawyer Worman, adding

that Klein had not yet decided whether he will appeal the ruling.

Osceola's decision is little consolation to homeowners stuck with trouble.

They can only hope that a new builder who is negotiating to buy the

subdivision will take responsibility.

Peyton, 38, who along with her father paid $132,000 for a Spring Lake

Village house in October 2000, said it remains unfinished -- with liens

against it -- while she continues to pay rent for her home in St. Cloud.

Vanatta, who pays $1,100 on an apartment he shares with his wife and

daughter, said he is squeezed financially because their $137,000,

four-bedroom home remains unfinished. It was supposed to be done in January

2001.

Heavy burden on residents

" I am paying a phenomenal amount in rent and interest on my construction

loan, so it is really hurting us financially, " Vanatta said

" You cannot imagine the burden this puts on a family. "

Klein testified that he formed Goldcrest Construction to build Spring Lake

Village, off Boggy Creek Road near the Orange-Osceola border, in 1997. At

the time, he was vice president of the company but did not hold a

contractor's license.

Homes were to be built under the license of the president, Ussery.

Klein said he handled the company's finances from an office in Orlando.

Ussery and Klein parted ways in February 2001, after the complaints had

started.

By last summer, residents were complaining to the county. Klein, who earned

a contractor's license in May 2001, said he shouldn't be held accountable

for errors by his former partner. Under mounting pressure from residents --

and an admission from Klein that one model of home was missing a

load-bearing wall -- the county ordered Klein to repair problems before

beginning any new projects.

Klein continued to take deposits on sites and down payments on new homes,

however, without resolving the complaints. He said fixing the problems took

longer than he expected. On Oct. 2, the county building department put a

stop order on Klein's ability to pull new building permits.

Negotiating for a sale

That move strangled his business, Klein said, costing him half of his

income. He has since signed a deal with another builder to complete

unfinished homes and is negotiating to sell the subdivision, planned for 400

homes, to D.R. Horton Homes, a third builder.

A county's intervening in a dispute with a developer is unusual.

Pattison, executive director of 1,000 Friends of Florida, an

organization advocating responsible development, said he doesn't know of any

similar situation in Florida.

" Unfortunately, it has to become a crisis before most local governments will

take action, " Pattison said.

Osceola County government has a reputation of being friendly toward

developers, but commissioners said they have a standard for how business is

to be done.

" We want to work with developers to provide homes for our community, " said

Owen. " But to be taken in by a developer creates an air of distrust. "

Statewide, only 20 contractor licenses were revoked in 2000-01, said Lonnie

Parizek, spokeswoman for the state Department of Business and Professional

Regulation.

" I wouldn't say it's an extremely common occurrence, " Parizek said.

Vanatta said he hopes that Klein's license is among those taken away this

year.

" I hope the state doesn't let him build in Florida at all, " Vanatta said.

" He ruined a lot of people's dreams and turned them into nightmares. "

Sherman of the Sentinel staff contributed to this report. April

Hunt can be reached at 407-931-5940 or ahunt@....

Copyright © 2002, Orlando Sentinel